Standards Comparison

    PIPL

    Mandatory
    2021

    China's comprehensive law protecting personal information rights

    VS

    COPPA

    Mandatory
    1998

    U.S. regulation protecting children under 13 from online data collection.

    Quick Verdict

    PIPL regulates all personal data processing for China with extraterritorial reach and strict transfers, while COPPA mandates parental consent for US children's online data under 13. Companies adopt PIPL for China market access, COPPA to avoid FTC fines.

    Data Privacy

    PIPL

    Personal Information Protection Law (PIPL)

    Cost
    €€€€
    Complexity
    Medium
    Implementation Time
    6-12 months

    Key Features

    • Extraterritorial application to foreign processors targeting China
    • Explicit separate consent for sensitive personal information
    • Cross-border transfers via security reviews or SCCs
    • Fines up to 5% of annual global revenue
    • Minors under 14 data treated as sensitive
    Children Privacy

    COPPA

    Children's Online Privacy Protection Act

    Cost
    €€€€
    Complexity
    High
    Implementation Time
    6-12 months

    Key Features

    • Verifiable parental consent before collecting child data
    • Targets children under 13 on child-directed sites/apps
    • Broad PII including persistent IDs and geolocation
    • Requires privacy notices and data access/deletion rights
    • FTC enforcement with $43,792 per-violation penalties

    Detailed Analysis

    A comprehensive look at the specific requirements, scope, and impact of each standard.

    PIPL Details

    What It Is

    Personal Information Protection Law (PIPL) is China's comprehensive national regulation enacted in 2021, effective November 1. It governs collection, processing, storage, transfer, and deletion of personal information with extraterritorial scope for foreign entities targeting China. Adopts a risk-based approach emphasizing consent, minimization, and individual rights, alongside Cybersecurity Law and Data Security Law.

    Key Components

    • 74 articles across 8 chapters covering processing rules, cross-border transfers, individual rights, handler obligations.
    • Core principles: lawfulness, necessity, minimization, transparency, accountability.
    • Sensitive personal information (SPI) like biometrics, health data requires explicit consent.
    • No certification but compliance via audits, PIPIAs; enforcement by CAC with steep fines.

    Why Organizations Use It

    Mandatory for China-exposed firms to avoid fines up to 5% revenue, operational disruptions. Builds market access, customer trust, resilience; enables strategic data flows.

    Implementation Overview

    Phased: gap analysis, data mapping, policies, controls, transfers. Applies to all sizes handling Chinese PI; 6-12 months typical, cross-functional effort with local representatives.

    COPPA Details

    What It Is

    Children's Online Privacy Protection Act (COPPA) is a U.S. federal regulation enacted in 1998, effective 2000, enforced by the FTC. It safeguards children under 13 from unauthorized online personal data collection by commercial websites, apps, and IoT devices directed at kids or with actual knowledge of child users. Employs a parental-control approach with verifiable consent requirements.

    Key Components

    • Verifiable parental consent (VPC) via methods like credit cards or video calls.
    • Privacy notices, data access/review/deletion rights.
    • Data minimization, security safeguards.
    • Expansive PII definition: names, geolocation, persistent IDs, audio/video. Compliance model via FTC oversight or safe harbors; no formal certification.

    Why Organizations Use It

    Mandated for operators to avoid fines up to $43,792 per violation (e.g., YouTube's $170M). Enhances parental trust, mitigates reputation/transaction risks, ensures global compliance for U.S.-targeted services. Supports data minimization for efficiency.

    Implementation Overview

    Assess audience, post policies, deploy age screens/VPC mechanisms, audit third-parties. Applies to commercial online operators worldwide targeting U.S. kids; scalable for SMBs via templates, complex for enterprises. Safe harbor audits optional.

    Key Differences

    Scope

    PIPL
    Personal info processing, cross-border transfers
    COPPA
    Children's online data collection under 13

    Industry

    PIPL
    All sectors, China extraterritorial
    COPPA
    Online services targeting US children

    Nature

    PIPL
    Mandatory national law, CAC enforcement
    COPPA
    Mandatory federal rule, FTC enforcement

    Testing

    PIPL
    PIPIA for high-risk, regular audits
    COPPA
    Verifiable parental consent, compliance audits

    Penalties

    PIPL
    Up to 5% revenue or RMB 50M
    COPPA
    $43,792 per violation

    Frequently Asked Questions

    Common questions about PIPL and COPPA

    PIPL FAQ

    COPPA FAQ

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